Leader Energy Services Ltd. (fka LDRXF)

[10 bagger]

LDRXF.. $0.668.. Cross post explaining weather in the oil patch and it's impacat on O&G service companies.. It looks like with the additional shares and the lack of work due to weather we will be back on the same cycle as LDRXF was as when I first bought it below $0.20.. I don't think we will see it trading that low because it is a much stronger and better finannicals are present but it could trade back into the high $0.40's with most of the selling coming from Canada.. .. hank

LEA and spring break up: It appears spring breakup has already started in Alberta. Lighter than normal snow fall brings hope that the break up period will also be shorter than normal this time:


Spring break up is when the rigs cannot move to the next work site because road bans are in place. Until road bans are lifted, the rig is shut down and the crews are sent home and laid off if there is no work for them on other rigs.

Spring break up can last anywhere from 6 weeks to 3 months, depending on weather and activity levels. It can start as early as the end of February and continue until the beginning of June.

Article about this years spring breakup:
http://blogs.calgaryherald.com/2012/03/22/early-spring-breakup-looms-dry-summer-to-follow/

Early spring breakup looms; dry summer to follow?Posted on Mar 22, 2012

Its becoming a matter of consensus that Alberta will have an early spring breakup this year, despite Thursday morning’s brief flurries in Calgary.

Such events are not considered positives for the oil and gas services business, as melting ground leads to soft back roads and municipal road bans, making it impossible to get rigs and trucks and other heavy equipment to the well site.

TriOil Resources Ltd. reported earlier this week that road bans are already affecting its Lochend Cardium play just northwest of Calgary.

Alberta Transportation has a list of road bans on its website and, as of Thursday, the list was five pages long.

An early breakup is bad but a long breakup is worse. Last spring, companies in plays from northwestern Alberta to southwestern Manitoba were hit by wet conditions that drowned equipment and roads in massive lakes. Production and cash flow suffered accordingly.

Farmers may not like the lack of snowpack in the Prairies this winter but oil and gas explorers are hoping it means a short period of enforced idleness followed by a long, dry and productive summer.